Pennsylvania Casinos File a Lawsuit Related to Skill Games
Twelve casinos in Pennsylvania have filed a lawsuit against the state and want the court to deem the tax on slot machine revenue as unconstitutional. Their stance is that the state doesn’t impose the same rules for skill games that can be found in numerous bars and stores.
The lawsuit was filed at the end of July and could endanger over $1 billion in annual tax revenue.
Recently, we’ve seen more and more Americans make a switch to online casinos that aren’t regulated by their state. Some of the are those that are regulated by commissions in Panama and Cura莽ao.
Gambling enthusiasts wanting to play in a can encounter better bonuses, promotional offers, and more flexible deposit and withdrawal options when turning to offshore operators.
But what happens with casinos regulated by Pennsylvania?
With the system currently in place, the state collects around 54% tax on all money casinos make from slot machines, but doesn’t do the same on electronic game terminals which are commonly referred to as skill games.
Pennsylvania casinos see this as a violation of constitutional guarantees that exist to ensure the taxation is fair across all.
The state Department of Revenue has since declined to make any comments on the lawsuit. At the same time. The Pennsylvania Gaming Control Board responded by saying that it has learned about it only recently and is currently evaluating the lawsuit.
According to the numbers provided by the American Gaming Association, Pennsylvania brings in more tax revenue from casinos than any other US state.
Previously, lawmakers in the state have discussed regulating and taxing skill games, but no agreement has been made so far.
American Gaming Association figures also show that there are at least 67,000 skill game terminals in Pennsylvania, which is also more than in any other state in the country. At the same time, there are 25,000 regulated slot machines that casinos pay taxes for.
Last year, the state brought in a record $5.7 billion in revenue from gambling, $2.46 billion of which came from slot machines. This resulted in another record- a tax revenue of $2.34 billion.
It’s also worth mentioning that we’ve seen the same issue being raised in Kentucky, where while legislative debates take place. Skill games are also banned in Virginia, but .